{"id":71812,"date":"2026-09-15T13:08:15","date_gmt":"2026-09-15T17:08:15","guid":{"rendered":"https:\/\/www2.stockmarketwatch.com\/stock-market-news\/gm-cfo-warns-of-2027-flat-spot-for-evs-amid-strategic-shift-to-gas-powered-trucks\/71812\/"},"modified":"2026-09-15T13:08:15","modified_gmt":"2026-09-15T17:08:15","slug":"gm-cfo-warns-of-2027-flat-spot-for-evs-amid-strategic-shift-to-gas-powered-trucks","status":"publish","type":"post","link":"https:\/\/www2.stockmarketwatch.com\/stock-market-news\/gm-cfo-warns-of-2027-flat-spot-for-evs-amid-strategic-shift-to-gas-powered-trucks\/71812\/","title":{"rendered":"GM CFO Warns of 2027 \u2018Flat Spot\u2019 for EVs Amid Strategic Shift to Gas-Powered Trucks"},"content":{"rendered":"<h2>Key Takeaways<\/h2>\n<ul>\n<li><strong>General Motors (<a href=\"\/stock\/GM\">GM<\/a>) CFO Paul Jacobson<\/strong> expects <strong>2027<\/strong> to be a &quot;flat spot&quot; for electric vehicle (EV) growth as the company prioritizes high-margin gasoline-powered trucks.<\/li>\n<li>The automaker has recorded <strong>$10.9 billion<\/strong> in EV-related restructuring charges since late 2025, including a <strong>$2.3 billion<\/strong> charge in the second quarter of 2026 alone.<\/li>\n<li><strong>GM<\/strong> is indefinitely delaying next-generation electric truck redesigns until <strong>2030<\/strong> or later, redirecting engineering resources toward its profitable internal combustion engine (ICE) portfolio.<\/li>\n<li>Despite the &quot;flat spot&quot; in volume, <strong>GM<\/strong> expects EV profitability to improve by <strong>$1 billion to $1.5 billion<\/strong> in 2026 through capacity &quot;right-sizing&quot; and material cost reductions.<\/li>\n<\/ul>\n<p>General Motors (<a href=\"\/stock\/GM\">GM<\/a>) Chief Financial Officer <strong>Paul Jacobson<\/strong> signaled a cautious outlook for the company\u2019s electric vehicle trajectory, describing <strong>2027<\/strong> as a likely &quot;flat spot&quot; for the segment. Speaking during a recent industry update, <strong>Jacobson<\/strong> noted that while the automaker remains committed to an electrified future, the immediate focus has shifted toward protecting margins and leveraging its dominant position in the gasoline-powered truck market. This pivot comes as consumer demand for expensive electric pickups has cooled significantly following the expiration of federal tax credits and shifts in regulatory policy.<\/p>\n<p>The financial toll of this strategic realignment has been substantial, with <strong>GM<\/strong> swallowing nearly <strong>$11 billion<\/strong> in write-downs and charges related to its EV reset since the second half of 2025. These costs include <strong>$4.2 billion<\/strong> for contract cancellations and supplier settlements, as well as significant charges for retooling factories back to ICE production. <em>Market analysts suggest this retreat reflects a broader industry trend where legacy automakers are prioritizing immediate cash flow from traditional vehicles over aggressive EV volume targets.<\/em><\/p>\n<p>To mitigate the impact of slowing EV adoption, <strong>GM<\/strong> is doubling down on its most profitable assets: full-size SUVs and pickup trucks. The company recently announced plans to retool three vehicle plants and three engine facilities in late 2026 to support new versions of the <strong>Chevrolet Silverado<\/strong> and <strong>GMC Sierra<\/strong>. While these launches will incur temporary expenses and a production dip of approximately <strong>35,000 units<\/strong>, management believes this focus is essential to achieving its <strong>$13 billion to $15 billion<\/strong> adjusted EBIT guidance for 2026.<\/p>\n<p>Looking toward the end of the decade, <strong>GM<\/strong> aims to maintain a flexible manufacturing footprint that can respond to &quot;natural demand&quot; rather than regulatory mandates. The company is still targeting &quot;variable profit positive&quot; status for its current EV lineup, aided by the launch of high-margin models like the <strong>Cadillac Escalade IQ<\/strong>. However, the once-lofty goal of surpassing Tesla (<a href=\"\/stock\/TSLA\">TSLA<\/a>) in EV sales by 2025 has been officially shelved in favor of a more &quot;disciplined&quot; capital allocation strategy that favors shareholder returns through buybacks and dividends.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Key Takeaways General Motors (GM) CFO Paul Jacobson expects 2027 to be a &quot;flat spot&quot; for electric vehicle (EV) growth [&hellip;]<\/p>\n","protected":false},"author":2,"featured_media":50383,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"site-sidebar-layout":"default","site-content-layout":"","ast-site-content-layout":"","site-content-style":"default","site-sidebar-style":"default","ast-global-header-display":"","ast-banner-title-visibility":"","ast-main-header-display":"","ast-hfb-above-header-display":"","ast-hfb-below-header-display":"","ast-hfb-mobile-header-display":"","site-post-title":"","ast-breadcrumbs-content":"","ast-featured-img":"","footer-sml-layout":"","theme-transparent-header-meta":"","adv-header-id-meta":"","stick-header-meta":"","header-above-stick-meta":"","header-main-stick-meta":"","header-below-stick-meta":"","astra-migrate-meta-layouts":"default","ast-page-background-enabled":"default","ast-page-background-meta":{"desktop":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"tablet":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"mobile":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""}},"ast-content-background-meta":{"desktop":{"background-color":"var(--ast-global-color-4)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"tablet":{"background-color":"var(--ast-global-color-4)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"mobile":{"background-color":"var(--ast-global-color-4)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""}},"rank_math_schema_Article":[],"rank_math_focus_keyword":[],"rank_math_description":[],"financial_data_references":[],"stock_symbols_mentioned":[],"footnotes":""},"categories":[5012],"tags":[3753,4832,5282,5455,5554,9253,22514],"class_list":["post-71812","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-breaking-news","tag-gm","tag-electric-vehicles","tag-ev","tag-automotive-industry","tag-general-motors","tag-ice","tag-paul-jacobson"],"_links":{"self":[{"href":"https:\/\/www2.stockmarketwatch.com\/stock-market-news\/wp-json\/wp\/v2\/posts\/71812","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www2.stockmarketwatch.com\/stock-market-news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www2.stockmarketwatch.com\/stock-market-news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www2.stockmarketwatch.com\/stock-market-news\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www2.stockmarketwatch.com\/stock-market-news\/wp-json\/wp\/v2\/comments?post=71812"}],"version-history":[{"count":0,"href":"https:\/\/www2.stockmarketwatch.com\/stock-market-news\/wp-json\/wp\/v2\/posts\/71812\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www2.stockmarketwatch.com\/stock-market-news\/wp-json\/wp\/v2\/media\/50383"}],"wp:attachment":[{"href":"https:\/\/www2.stockmarketwatch.com\/stock-market-news\/wp-json\/wp\/v2\/media?parent=71812"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www2.stockmarketwatch.com\/stock-market-news\/wp-json\/wp\/v2\/categories?post=71812"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www2.stockmarketwatch.com\/stock-market-news\/wp-json\/wp\/v2\/tags?post=71812"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}